- Premier League’s Swift Resolution Effort
- Evolving Negotiations and Complex Formula
- Pressure Mounts for Fair Financial Distribution in English Football
Amid mounting political pressure, the English football premier division has informed its 20 clubs that it seeks a “quick” resolution to its financial redistribution discussions with the Football League.
The Premier League aims to reach a financial agreement with its lower league counterparts within the next few weeks, as English football attempts to deflect political criticism regarding the distribution of money within the sport.
The Premier League informed its 20’shareholders’ on Thursday that it now planned to reach a swift conclusion to the protracted negotiations, with top-flight clubs prepared to pay the English Football League (EFL) well over £100 million annually in additional funding.
Further details of the so-called ‘New Deal’ for football were unclear on Friday, but the communication to clubs such as Arsenal, Manchester City, and newcomers Luton Town suggests that a conclusion to negotiations may finally be in sight.
In light of the deal’s complexity and importance, an imminent agreement may prove elusive, according to one executive involved in the discussions.
The discussions have centered in part on the proportion of ‘net media revenues’ – or combined broadcast income – that the Premier League is willing to see redistributed to the 72 EFL clubs.
Premier League had offered a £30 million annual cash sweetener in an attempt to secure an agreement, but since then, negotiations have moved at a snail’s pace.
One club executive reported on Friday that Richard Masters, the chief executive of the Premier League, was “hopeful that a resolution can be reached quickly.”
They added that another update is anticipated this month.
According to sources on both sides of the table, the EFL’s desired formula for calculating the quantities it would receive had changed during the negotiation process.
The communication was sent on the eve of the new Premier League season, at a time when the impact of the Saudi Pro League’s lavish spending on international players was under intense scrutiny.
In June, the Culture, media, and sport select committee of the House of Commons recommended that the Premier League and EFL reach an agreement on the provision of funding throughout the English football pyramid, or face having a settlement imposed by a new regulator that ministers have been urged to establish.
The committee chair, Dame Caroline Dinenage, stated that if the football authorities don’t agree on a fairer share of revenue shortly, we risk more clubs collapsing, which can have devastating effects on local communities.
In a white document published earlier this year, the government stated, “The current revenue distribution is insufficient, contributing to issues of financial instability and destabilizing the football pyramid.”
“Therefore, there remains a clear need to reform financial distributions in English football.”
The white paper predicts a £4 billion revenue difference between Premier League and Championship clubs in 2020-21.
The £125m-per-year increase proposed by the Premier League in March would be in addition to the £110m-per-year in solidarity payments’ made to Championship and other EFL clubs.
Excluding teams receiving parachute payments, each Championship club received $4.8 million last season. While League One and League Two clubs received $720,000 and $480,000, respectively.
In the meantime, clubs relegated from the Premier League received £44 million in their first season in the Championship in 2022-23, £36 million in their second season, and £16 million in their third season.
The Premier League declined to comment, while an EFL representative stated that talks were ongoing.
